SoftwareOne in advanced discussions to acquire Crayon
This comes after the Swiss reseller was almost acquired itself earlier this year
SoftwareOne has revealed it is in discussions to buy Crayon for a consideration of cash and shares.
This comes as the Swiss reseller previously refused many bids itself from Bain Capital over the last couple years.
The private equity firm offered SoftwareOne CHF 18.80 (£16.6) per share in January, after a CHF 2.7bn bid in June 2023, and a CHF 3.2bn bid in July 2023.
Instead, the company made two acquisitions this year, with the merger of Spanish SAP and cloud services provider Novis Euforia in January, and China-based cloud application solutions provider Medalsoft in February.
This investment also comes despite the reseller’s disappointing results in Q3 this year, as its revenue went slightly up 3.1 per cent year-on-year in constant currency (ccy), with adjusted EBITDA dropping 15.8 per cent year-on-year ccy to CHF 39.2m (prior year: CHF 47.9m).
The group’s revenue stood at £210.53m in Q3 FY24.
On the other hand, Oslo-based Crayon announced double digit growth during the same quarter, despite the overall market being more cautious than expected, according to CEO Melissa Mulholland.
Back in June, Mulholland told CRN that the company would consider potential future acquisitions, specifically in the US, where Crayon wants to strengthen its market position.
"We're certainly always looking for accretive acquisitions, but our growth has predominantly been through organic means," she told CRN.
When asked what Crayon would see as accretive, Mulholland said: "We are focusing on augmenting skills and capabilities we don't currently have and expanding our market size.”
Regarding its buyout by SoftwareOne, there is no certainty that these discussions will lead to an offer to Crayon shareholders.
This potential acquisition arrives less than two months after company vet Raphael Erb’s appointment as CEO, stepping up from his CRO role he held since June.
“I have no doubt that we can get SoftwareOne back on its growth trajectory by enhancing our focus on customers, empowering our people on the front line and improving our commercial model,” declared Erb in October.
SoftwareOne ranks number 12 in CRN’s Top VARs 2024 List, while Crayon ranks number 74.